What revenue sources are specifically excluded from the definition of 'Gross Revenue' for a Camp Margaritaville?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Gross Revenue shall exclude only: (a) free or discounted rooms and upgrades or other "comps" for which the Resort collects no revenue or in-kind value for; (b) federal, state, or municipal excise, room, sales, or use taxes, or similar taxes collected from guests and paid to an applicable governmental authority; (c) gratuities, service charges, or similar receipts collected and then paid directly to staff; (d) any sale of fixtures, machinery, or other equipment that is not in the ordinary course of your business; (e) any gift card, coupons, or the like at the time of purchase, but which shall be included in Gross Revenue upon redemption; (f) any complimentary breakfast service; and (g) any other adjustments to revenue in conformance with accounting principles generally accepted in the United States ("GAAP") and the Uniform System of Accounts for the Lodging Industry, 11th Edition (Educational Institute of the American Hotel and Motel Association, publisher), or a later edition we approve ("Uniform System") (excluding any adjustment that excludes resort fees and the like).
Source: Item 6 — OTHER FEES (FDD pages 20–34)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, 'Gross Revenue' for royalty fee calculation excludes specific items. These exclusions include free or discounted rooms and upgrades for which the resort collects no revenue or in-kind value. Also excluded are federal, state, or municipal excise, room, sales, or use taxes collected from guests and remitted to governmental authorities, as well as gratuities, service charges, or similar receipts collected and paid directly to staff.
Additionally, the definition of Gross Revenue excludes revenue from the sale of fixtures, machinery, or other equipment not sold in the ordinary course of business. It also excludes the initial sale of gift cards or coupons, although these are included in Gross Revenue upon redemption. Revenue from complimentary breakfast service is also excluded. Finally, any other adjustments to revenue that conform with accounting principles generally accepted in the United States (GAAP) and the Uniform System of Accounts for the Lodging Industry are excluded, with the exception of adjustments that exclude resort fees and similar charges.
For a prospective Camp Margaritaville franchisee, understanding these exclusions is crucial for accurately calculating royalty fees and managing financial reporting. By excluding these items, the royalty fee is based on the actual revenue generated from the core operations of the resort, providing a clearer picture of the business's financial performance. Franchisees should ensure their accounting practices align with the Uniform System to properly account for and report Gross Revenue, as this directly impacts the royalty fees owed to Camp Margaritaville.